Against the backdrop of deteriorating Federal
roads nationwide, the Federal Government may
have decided to reintroduce tolling on its
highways, to raise money to fix the roads. A policy document on the reintroduction of
tolling may be forwarded to the Federal
Executive Council by Works Minister, Mike
Onolememen, for approval and
implementation. The policy document is known as Green Paper:
Federal Roads and Bridges Tolling Policy for
Nigeria.’
The Director, Public, Private Partnership,
Federal Ministry of Works, Babatunde
Ekusinmi, who disclosed this to newsmen noted that “Nigeria had operated some toll
roads for several years, but they were
abandoned in 2004, due mainly to legal
disputes, revenue leakages and unmet
maintenance of the tolled roads. With tolling
once again being considered as a policy option, Nigeria has the advantage that it can assess
successfully and execute tolling to develop,
build, manage and maintain roads”. The Green Paper proposal claimed that tolling
policy would foster the improvement of
Nigerian roads and bridges. “Tolling would
generate the revenue needed to recover cost
to the private investor of the construction,
rehabilitation, financing, maintenance and operation of the road and bridge, and to
achieve reasonable returns for that investor;
the Federal Government would enter into toll
concessions only where such concessions are
financially viable and forecast traffic volume is
high (unless there are strong economic or social grounds). The Paper also said the Federal Government
would permit tolling only for specific roads and
bridges where the related investment results in
significant improvements for road users and
toll payers; the Federal Government would
ensure that tolls are ring-fenced and dedicated to defraying the costs of rehabilitation,
upgrading, maintenance and operation of such
roads; the Federal Government would introduce
mandatory public consultations prior to tolling
any road or bridge in Nigeria, to provide users
with critical information in advance of the tolling being introduced.
The Federal Government would give
preference to tolling by established and
reputable private firms; toll rates would
distinguish between vehicle classes to reflect
the cost of providing road space to a class of
vehicles and their relative usage impact on road pavements; tolls should be fixed during
the length of a concession, subject only to
periodic increases which are agreed in the
contract and are based on an adjustment
formula which takes account of inflation and
other variables. Ekusinmi said it would be necessary to
empower concessionaires to appoint officers
with powers to stop vehicles and verify toll
payment, and such powers would be clearly
specified and circumscribed to avoid potential
for abuse. He said the Federal Government would speedily
implement institutional reforms to clarify
responsibilities for implementing and
overseeing road and bridge tolling; the Federal
Government would ensure it has sufficient
capacity to oversee the implementation of toll concessions – initially through the Ministry of
Works and Federal Roads Maintenance Agency,
FERMA, and subsequently through the
establishment of the proposed Federal Roads
Authority, FRA. He emphasised that the application of Public-
Private Partnerships, PPPs, with the use of
tolling, provides Nigeria with an excellent
strategy to improve its roads and bridges for
the benefit of Nigeria’s economy, businesses
and communities. Projects, he said were already progressing
rapidly and that “it is essential that the policy
framework is in place to support and facilitate
such progress. A tolling policy will establish the
enabling environment in which tolling is applied
appropriately, and investors and the public can be confident in the future. “The intent of the Tolling Policy Green Paper is
clear. Tolling and private investment should be
used to achieve substantial improvements to
Nigerian roads and bridges. The Green Paper
objective is to improve the proposed policy,
and the Federal Ministry of Works looks forward to constructive engagement, feedback
and comments from all stakeholders,” he said.
roads nationwide, the Federal Government may
have decided to reintroduce tolling on its
highways, to raise money to fix the roads. A policy document on the reintroduction of
tolling may be forwarded to the Federal
Executive Council by Works Minister, Mike
Onolememen, for approval and
implementation. The policy document is known as Green Paper:
Federal Roads and Bridges Tolling Policy for
Nigeria.’
The Director, Public, Private Partnership,
Federal Ministry of Works, Babatunde
Ekusinmi, who disclosed this to newsmen noted that “Nigeria had operated some toll
roads for several years, but they were
abandoned in 2004, due mainly to legal
disputes, revenue leakages and unmet
maintenance of the tolled roads. With tolling
once again being considered as a policy option, Nigeria has the advantage that it can assess
successfully and execute tolling to develop,
build, manage and maintain roads”. The Green Paper proposal claimed that tolling
policy would foster the improvement of
Nigerian roads and bridges. “Tolling would
generate the revenue needed to recover cost
to the private investor of the construction,
rehabilitation, financing, maintenance and operation of the road and bridge, and to
achieve reasonable returns for that investor;
the Federal Government would enter into toll
concessions only where such concessions are
financially viable and forecast traffic volume is
high (unless there are strong economic or social grounds). The Paper also said the Federal Government
would permit tolling only for specific roads and
bridges where the related investment results in
significant improvements for road users and
toll payers; the Federal Government would
ensure that tolls are ring-fenced and dedicated to defraying the costs of rehabilitation,
upgrading, maintenance and operation of such
roads; the Federal Government would introduce
mandatory public consultations prior to tolling
any road or bridge in Nigeria, to provide users
with critical information in advance of the tolling being introduced.
The Federal Government would give
preference to tolling by established and
reputable private firms; toll rates would
distinguish between vehicle classes to reflect
the cost of providing road space to a class of
vehicles and their relative usage impact on road pavements; tolls should be fixed during
the length of a concession, subject only to
periodic increases which are agreed in the
contract and are based on an adjustment
formula which takes account of inflation and
other variables. Ekusinmi said it would be necessary to
empower concessionaires to appoint officers
with powers to stop vehicles and verify toll
payment, and such powers would be clearly
specified and circumscribed to avoid potential
for abuse. He said the Federal Government would speedily
implement institutional reforms to clarify
responsibilities for implementing and
overseeing road and bridge tolling; the Federal
Government would ensure it has sufficient
capacity to oversee the implementation of toll concessions – initially through the Ministry of
Works and Federal Roads Maintenance Agency,
FERMA, and subsequently through the
establishment of the proposed Federal Roads
Authority, FRA. He emphasised that the application of Public-
Private Partnerships, PPPs, with the use of
tolling, provides Nigeria with an excellent
strategy to improve its roads and bridges for
the benefit of Nigeria’s economy, businesses
and communities. Projects, he said were already progressing
rapidly and that “it is essential that the policy
framework is in place to support and facilitate
such progress. A tolling policy will establish the
enabling environment in which tolling is applied
appropriately, and investors and the public can be confident in the future. “The intent of the Tolling Policy Green Paper is
clear. Tolling and private investment should be
used to achieve substantial improvements to
Nigerian roads and bridges. The Green Paper
objective is to improve the proposed policy,
and the Federal Ministry of Works looks forward to constructive engagement, feedback
and comments from all stakeholders,” he said.
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